A. This is the amount that would be allocated to LS using the NRV as the allocation basis.

B. This is the amount that would be allocated to LS using physical quantity as the allocation basis.

C. This is the amount that would be allocated to SS using physical quantity as the allocation basis.

D. The NRV is calculated as sales price minus costs required to complete and dispose of the item. In order to allocate joint costs using NRV we first need to calculate the NRV for each of the two products. We can do this on a per unit basis as follows: The selling price of LS is $2.40 per gallon, but there are additional processing costs of $1.40 per gallon. This leaves an NRV of $1 per gallon of LS. Since there are 180,000 gallons of LS, the NRV for LS is $180,000. Doing the same for SS, we get an NRV of $3 per gallon ($3.90 selling price - $.90 additional costs) and with 120,000 gallons this is a total NRV of $360,000. In total there is $540,000 of NRV, and SS makes up 2/3 of the total NRV. Therefore, SS should receive 2/3 of the $420,000 joint costs, or $280,000.